Sell investment flat?

[whatwhatwhot]

About 10 years ago we moved out of our flat and into a house. Through circumstances we were able to keep the flat and have rented it out successfully for 10 years. No gaps in between tenants. Great tenants. We charge slightly under market value. We make no day to day profit. But enough to pay the tax bill.

Bought for £160k. Worth now ~£250k. Outstanding mortgage is £100k.

With the changes coming in for landlords. Is it better to sell and invest the £150k (less CGT) or keep and hope we don't get a bad tenant.

I don't want all our money only in stocks and shared as I feel that is too risky. We currently have ~£120k in stocks and shares isas.

With work bonuses we could possibly pay off the mortgage in next (5-7!years) rent ~£1k /month. I could get £1.2k /month.

Not sure what to do.

Is the house mortgaged? If so, I would probably sell and pay off all mortgages.

@Cantabulous it is mortgaged yes. We still owe ~£100k

Are your current tenants planning on staying long term? If so, I'd be tempted to hold on.

She is a GP in training and she has indicated that when she finishes, she will relocate somewhere else. We have had really good tenants.

I would imagine that paying off your mortgage and investing the balance would be a better use. Then your mortgage payments can go to pension and ISA investment.

Your other option if you want to keep the flat is to see whether any of the local housing associations have schemes where they take over your property for a guaranteed monthly return and they manage maintenance, lettings etc. Usually done for a fixed period and the property is returned to you in good condition at the end. It's a way for them to have housing stock without needing capital investment.